Leading cryptocurrency market data firm Messari estimates that 20% of all DEX [Decentralized Exchange] volume on Ethereum [ETH] is routed via DEX aggregators.
Within a recent newsletter, Messari revealed that “the 21st century is dominated by aggregators,” adding, “Amazon aggregates consumers and merchants. Uber aggregates riders and drivers. Netflix aggregates viewers and content. The list goes on.”
With “the first attempts at aggregation in DeFi” starting to form a shape, Messari states that a lot of of the sector’s aggregators “are seeing early product-market-fit” and can be ready to capture significant value as the DeFi ecosystem grows.
Various DeFi Protocols Emerging
Messari describes decentralized finance aggregators as funneling user demand into various DeFi protocols.
With the returns available to liquidity providers constantly varying across a myriad of assets and platforms, DeFi aggregators assist investors find the very best possible yields, the least slippage and therefore the most robust stablecoins.
DeFi Rankings Top’s Market
Many aggregators are already emerging as leading DeFi projects, with decentralized finance management platform Instadapp now ranking as the 6th – largest protocol with $258.7 Mln in locked value.
As per Messari, Instadapp locks over 7% of total worth entering into the DeFi ecosystem.
Yearn.finance has also exploded recently, ranking as the 8th-largest project with $177.8 Mln in locked capital, consistent with DeFi Pulse.
Despite emphasizing that three of the top 5 companies within the S&P 500 comprise aggregators of various kinds, Messari predicts that some DeFi aggregators “may struggle to capture value as easily as tier FAANG analogues.”